Dakota Office Products

Increase the frequency of purchases by your customers. No matter how poor your current product or service, you must have some customers or clients. One key strategic dimension that you should be thinking about is how to augment and reposition your product in order to sell more to this group.

* Ensure that the well being of the customer is your first priority i.e. a doctor is called, they attend and help the customer

1. How would you classify Forest Hill Paper Company in terms of size and ownership?

Answer 1- The first question which shows the two new options how impact transfer and customer might freight cost and the answer for this question is given in first alternative and second alternative which is elaborated above.

Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.

Question 5: Which type of variation was critical to resolving the realized revenue case study?

z. P2) High profits are the signal that consumers want more of the output of the industry.

Answer: Comparing the direct labor and overhead costs from 1988 and 1989 the actual savings were 270% (as detailed in Table 1)

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000.

If Stuart Daw adopts the Transaction based Pricing Strategy it may face the following impact

1. Bridget Company uses activity-based costing. The company has two products: A and B. The annual

The cost in transportation rates will increase for MARS Inc. with this change. The Portland supplier’s location to MARS Inc. based on the current situation charges “per hundredweight is $10 for carload lots of 50,000 pounds. The less than carload rate is $15 per hundredweight.” While anything coming from the Columbus supplier was offered just-in-time delivery service at no charge to MARS Inc. Also, this will affect the EOQ’s because dealing with the Columbus supplier they were located close enough that they offered JIT delivery which allowed the reduction minimizing “work-in-process inventories (waste) by reducing lot sizes in order to increase production efficiency and product quality.” Now, with the change, it will force MARS Inc. to spend money on warehousing and carrying cost due to the one week replenishment cycle the Portland supplier has.

Throughout this report, our team will describe how we used activity based costing to allocate costs, illustrate why the traditional system is faulty, and recommend changes that Forest Hill Paper Company should consider implementing in the near future.

2) Develop an activity based cost system for Dakota office products based on year 2000 data. Calculate the activity cost driver rate for each DOP activity in 2000.